Legal action possible over Queensland MP 'smears'

A retail body at the centre of sexual harassment allegations levelled at a rookie Queensland MP says the "false and baseless" claims are part of a smear campaign.

Redcliffe MP Scott Driscoll has been targeted over the past week for alleged financial mismanagement and sexual harassment of employees while he was president of the Queensland Retail Traders and Shopkeepers' Association.

But the association, which Mr Driscoll headed before he was elected, says it strenuously denies the allegations and is considering whether to pursue legal action.

Former employee Amy Ellingworth claimed she was "belittled" by Mr Driscoll, who forced her to chart her menstrual cycle on an office calendar.

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Another former staff member, Rachel Maree, claimed Mr Driscoll sacked her while she was in hospital awaiting surgery for a broken wrist after being assaulted.

The retail body says the two women were "deliberately making false statements designed to cause commercial damage and defame QRTSA".

It also hit out at claims Mr Driscoll failed to produce books relating to about $700,000 in funds meant for the QRTSA.

He was also accused of moonlighting for the retail association after he became an MP.

The association said the allegations were made by "disaffected individuals".

"The QRTSA also confirms that Mr Scott Driscoll no longer holds any elected or employed position within QRTSA and as such is not empowered or authorised to make any public comments regarding the allegations reported and outlined above," the statement read.

The QRTSA has more recently operated under the United Retail Federation banner, the website of which still listed Mr Driscoll as its national president on Monday afternoon.